In Texas, workers comp replaces lost wages at 70% of your average weekly wage, up to $1,314 per week, administered by the Texas Department of Insurance, Division of Workers' Comp; benefits are generally not subject to federal income tax.
Workers compensation lost wages in Texas are calculated at 70% of your average weekly wage (AWW), up to $1,314 per week. This covers income you lose while unable to work due to a work-related injury. Unlike a regular personal injury claim, workers comp does not pay 100% of your lost wages, the benefit is intentionally capped at a percentage of AWW to preserve the no-fault nature of the system. However, workers comp benefits are also generally tax-free, which means your net take-home is often close to your normal after-tax pay.
Most states impose a waiting period of 3 to 7 days before lost wage benefits begin. In Texas, the administering authority is the Texas Department of Insurance, Division of Workers' Comp, and you must report your injury promptly, delays in reporting can jeopardize your lost wage benefits.
Lost wages extend beyond just your regular hourly or salary earnings. If you regularly worked overtime, those wages may be included in your AWW calculation. Fringe benefits like housing allowances, regular bonuses, and tips may also factor into your AWW depending on your state's rules. The Texas Department of Insurance, Division of Workers' Comp provides specific guidance on what components of compensation are included in the AWW calculation under Texas's workers comp statutes.
| State | Texas |
|---|---|
| Administering Authority | Texas Department of Insurance, Division of Workers' Comp |
| Lost Wages Rate | 70% of average weekly wage |
| Maximum Weekly Benefit | $1,314 |
| Maximum TTD Duration | Up to 104 weeks |
| Appeal Deadline | 90 days |
In Texas, most workers comp claims have a waiting period of 3 to 7 days before lost wage benefits begin. If you are disabled for longer than the retroactive threshold (typically 14-21 days), waiting period days are usually paid retroactively, so a serious long-term injury results in benefits going back to day one.
In Texas, lost wages for workers comp purposes include regular salary or hourly wages, regular predictable overtime, shift differentials, and sometimes tips. Your total eligible earnings are divided by weeks worked to determine AWW, then multiplied by 70% (up to $1,314) to get your weekly benefit.
Yes, but with an offset. Your combined workers comp and Social Security Disability Insurance (SSDI) benefits cannot exceed 80% of your pre-disability average earnings. If they do, SSDI is reduced (not your workers comp). Structuring your settlement correctly can minimize this offset, a workers comp attorney or structured settlement specialist can advise you.
No. Workers comp in Texas replaces 70% of your average weekly wage, not 100%. The intentional gap serves to encourage return to work. However, workers comp benefits are generally tax-free under IRC Section 104, which means your net benefit is often close to your normal after-tax take-home pay.
Yes, if your overtime was regular and predictable, it is included in your AWW calculation in Texas. The Texas Department of Insurance, Division of Workers' Comp uses a 52-week lookback period to calculate AWW. Variable overtime from the weeks before injury, regular shift premiums, and in some cases regular bonuses may all be included. An attorney can help reconstruct your AWW if you had variable income.
Workers comp lost wage benefits in Texas continue until you return to work, reach Maximum Medical Improvement (MMI), or exhaust the state's maximum TTD duration of up to 104 weeks. After TTD ends, you may transition to permanent partial disability (PPD) benefits if you have lasting impairment from your injury.
From Texas Department of Insurance, Division of Workers' Comp and Texas law. Checked October 2026. Each rule links to its official source.
| Weekly benefit | 70% of the difference between your average weekly wage and what you can earn after the injury (75% for some low earners). Source |
|---|---|
| Weekly maximum | $1,314 for injuries from October 1, 2026 to September 30, 2027 ($1,271 the year before). Resets every October 1. Source |
| Waiting period | The first week is unpaid unless you lose pay for 14 days or more. Source |
| Tell your employer | Within 30 days of the injury, or of when you knew it was job-related. Source |
| Deadline to file a claim | Send DWC Form-041 to the Division of Workers' Compensation within 1 year of the injury. Source |
| Settlement approval | Required. The Commissioner of Workers' Compensation or a designee must approve, and a settlement cannot end medical benefits. Source |
| Attorney fees | Capped at 25% of your benefits. Source |
Rules change. Confirm deadlines with Texas Department of Insurance, Division of Workers' Comp or a licensed workers comp attorney before you rely on them.